---
kind: "section"
citation: "15 U.S.C. § 5724"
title: "15"
title_heading: "Commerce and Trade"
number: "5724"
heading: "Definitions"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/15/5724"
units:
  - "Chapter 83 — Telephone Disclosure and Dispute Resolution"
  - "Subchapter II — Billing and Collection"
---

# §5724. Definitions


As used in this subchapter—

- (1) The term “telephone-billed purchase” means any purchase that is completed solely as a consequence of the completion of the call or a subsequent dialing, touch tone entry, or comparable action of the caller. Such term does not include—
  - (A) a purchase by a caller pursuant to a preexisting [agreement](/usc/15/7a.md?p=2) with the [vendor](#5);
  - (B) local exchange telephone services or interexchange telephone services or any service that the Federal Communications [Commission](/usc/15/5714.md?p=4) determines, by rule—
    - (i) is closely related to the provision of local exchange telephone services or interexchange telephone services; and
    - (ii) is subject to billing dispute resolution procedures required by Federal or [State](/usc/15/5714.md?p=3) statute or regulation; or
  - (C) the purchase of goods or services which is otherwise subject to billing dispute resolution procedures required by Federal statute or regulation.
- (2) A “billing error” consists of any of the following:
  - (A) A reflection on a billing statement for a [telephone-billed purchase](#1) which was not made by the [customer](#6) or, if made, was not in the amount reflected on such statement.
  - (B) A reflection on a billing statement of a [telephone-billed purchase](#1) for which the [customer](#6) requests additional clarification, including documentary evidence thereof.
  - (C) A reflection on a billing statement of a [telephone-billed purchase](#1) that was not accepted by the [customer](#6) or not provided to the [customer](#6) in accordance with the stated terms of the transaction.
  - (D) A reflection on a billing statement of a [telephone-billed purchase](#1) for a call made to an 800 or other toll free telephone number.
  - (E) The failure to reflect properly on a billing statement a payment made by the [customer](#6) or a credit issued to the [customer](#6) with respect to a [telephone-billed purchase](#1).
  - (F) A computation error or similar error of an accounting nature on a statement.
  - (G) Failure to transmit the billing statement to the last known address of the [customer](#6), unless that address was furnished less than twenty days before the end of the billing cycle for which the statement is required.
  - (H) Any other error described in regulations prescribed by the [Commission](/usc/15/5714.md?p=4) pursuant to [section 553 of title 5](/usc/5/553.md).
- (3) The term “[Commission](/usc/15/5714.md?p=4)” means the Federal Trade [Commission](/usc/15/5714.md?p=4).
- (4) The term “providing carrier” means a local exchange or interexchange common carrier providing telephone services (other than local exchange services) to a [vendor](#5) for a [telephone-billed purchase](#1) that is the subject of a billing error complaint.
- (5) The term “vendor” means any [person](/usc/15/7a.md?p=6) who, through the use of the telephone, offers goods or services for a [telephone-billed purchase](#1).
- (6) The term “customer” means any [person](/usc/15/7a.md?p=6) who acquires or attempts to acquire goods or services in a [telephone-billed purchase](#1).

## Source credit

(Pub. L. 102–556, title III, § 304, Oct. 28, 1992, 106 Stat. 4193.)